HSBC's Record Profits Overshadowed by $3 Billion China Writedown

HSBC reported a record annual profit of $30.3 billion, up 78% from the previous year, but fell short of analysts' expectations due to a $3 billion writedown from its stake in a Chinese bank. The bank announced a $2 billion share buyback and a fourth interim dividend of $0.31 per share, while also considering a special dividend once its Canada disposal is complete. CEO pay doubled in 2023, and the bank's Hong Kong-listed shares dropped 3.4% in afternoon trade. HSBC remains cautious about loan growth in the first half of 2024 and expects costs to rise further as it grapples with inflation and invests in its businesses.